$90.00 
Learn more
Submitted By: J.
Answered: January 27, 2017 9:00 am
Answered: January 27, 2017 9:00 am
A residence that had been held in a grantor trust was sold following the death of the grantor. The sale price was less than what the grantor paid for the home years ago. Is there a taxable loss?
When a taxpayer dies, the tax basis of the property is the value of the property on the date of death. As such, if property is sold for this date-of-death value, there is no gain or loss.
Ask JK
Advanced- Where do I report income from my corporation on Form 1040?
- I paid a convenience fee when I charged my property taxes. Can I deduct this fee?
- I receive disability from my employer, which is reported to me on Form W-2. Can I use this as a basis to make a Roth IRA contribution?
- Is income averaging still available?
advertisement
Featured Books
Tax Glossary
Installment sale
A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.
